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tv   Power Lunch  CNBC  August 12, 2009 12:00pm-2:00pm EDT

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hevy.
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i know what you're thinking. you're going to just check in here at the top of the hour, find out what the markets are doing, and then get on with your life. don't do that today, ladies and gentlemen. turn the phone off, sit down, because we have an incredible two hours planned. i'm not kidding you. i'm bill griffith, welcome to "power lunch." sue is off today. stocks surging ahead of the fed's announcement about what it's going to do about interest rates and the economy. we also have results of the $23
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billion ten-year note auction next hour. that could be a market-mover. but that's just the beginning, isn't it, steve? >> just the beginning. we're going for two straight hours here, right up until the fed meeting. will this fed meeting be the turning point? we'll tell you what sharkt movers and shakers are telling cnbc about the economy. >> and i'm michelle cabrusso-cabre cabrusso-cabrera, more signs to the end of a recession. we all know what rabini says and what he thinks, but now it looks like the world of hip-hop may be calling a bottom to the recession. here's what else is on the menu. >> i'm rebecca jarvis at global hq. macy's the first of the major re tailers reported results they raise guidance. we'll look at what will drive profits and whether sales are still slumping. did somebody say stabilization? >> i'm diana olick in washington, prices, if you're looking for gains, you're going to have to look hard. davenport, iowa, am little row, texas and al myra, new york.
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>> here's what's on the menu. a look at bernie madoff's right-hand man, where he helped run the biggest ponzi scheme. a stealth figure at the company? >> let's look at the stock market because the averages are higher for the first day in three days, stocks on track for their losing streak in five. bob pi san see kicks it off. what's driving this rally, bob? >> the beaten up groups are rallying. as well as financials down turning around. look at the builders here, i have been skeptical about these rallies, because there hasn't been a lot of positive data points. but toll brothers, very positive. orders to build homes increase for the first time in four years for the company. the cancellation rates went to 8%, way below the numbers six months ago. we need other positive metrics from other builders to reinforce that. insurance companies now hitting their highs for the year, hartford, some of the other
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names strong, like allstate, general worth. and finally i just wanted to noted the tech aser made some very positive comments over in taiwan about notebook shipments that's helped with some of the hardware stocks. and speaking of other tech stocks, let's go to brian standing by over at the nasdaq. >> things are strong, bob. back to 1.7%. i want to touch on the chips to compliment what matt nesto talked about earlier. in the middle of last month when intel reported it was one of the main sparks of this most recent rally, the semiconductor index up 1.9%. applied materials really strong. loss less than expected. they expect to return to profitable in gq4. and, of course, cree up 8.3%. want to look at other big names. yahoo 1. 7%. and yahoo, yes, you might argue the merits of the research deal with microsoft, but according to
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the "wall street journal" unique users continues to grow. and wireseed, want to point out the down side. steve nicholas will sell, and garmin down 3.5%. let's go to sharon epperson at the nymex. >> brian, the traders are following the stock market just as closely as they're watching crude, and we are looking at oil prices above $70 a barrel. keep in mind, it is the gains in the stock market, as well as the dollar's weakness that is really affecting oil. it's not so much the fundamentalses, even though we did hear from the energy department today that crude stocks surprisingly rose much more than expected, as did distill at fuel splice. keep in mind, the energy agency based in paris is seeing global demand picking up next year, 1.6% from this year. but really it is a stock story in terms of the oil move today. we are even not really paying much attention to this tropical depression off of the cape verdian coast. that could be something to watch for the oil and natural gas
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markets in the days ahead that. that could become the ? first-named storm, anna.? rick, back to you.? >> thank you sharon.? there is a question on the ? floor. if you're a stock trader and ha? no position and knew ? quantitative trading would be extended would you buy or sell? that's the question. now looking at s&ps, overcoming all their losses yesterday and rallying strong on a day where you could see easing extended. now look at the tenure. same chart. they haven't gone back to the same high yields they had yesterday morning. so the s&ps are stronger. the ten-year note which usually moves up when stocks are stronger isn't. maybe they're thinking there is going to be more buying by the government. that's the gain. and in terms of the dollar index, lower on a day is that stocks are higher, seems like that relationship really hasn't changed much. back to you. >> thanks, rick. you know, economists increasingly think it looks like the recession is over, or nearly. so a poll today in the "wall street journal" finding that 57% of the economists they polled
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think the downturn is done. the survey of economists in maine where 56% said the recession is over or would end in the next three months. doctor rabini even sounds a bit more upbeat today. >> the pressure has been eliminated by massive monitored fiscal stimulus of the fninancil system. but already in the 20th month of the recession, the worst we have had since the last 60 years. so this is not eight months -- it will be over by december, exactly 24 months. >> that means the current recession will be three times as long and six times as deep of gdp. maybe a few more money managers in there and hedge fund guys? they tended i think toward the pessimistic out there, rather than the economists who look for statistically at it. >> when the federal reserve puts out their statement today, how much are they going to
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acknowledge that the economy has gotten better. >> i think they're going to acknowledge it. i don't think they're going to be over the top. i think the federal reserve believes the policies they have in place need to remain in place to secure the recovery. because they don't want to suggest or at least seem to foreshadow a beginning of a process of increasing rates down the road, right? they don't want to be too positive on the economy. >> that is so true. i was going back and looking up some stuff that allen greenspan gave, a speech he gave in san diego of for really highlights the problem bernanke has. how does the fed increase rates a little bit now without the market pricing in the entire increase of rates? that's the problem for a fed guy where you may think the current situation is worth a quarter more, the market will put in four points or 400 basis points. the economy can't take that now. >> recovery is too fragile. and roubini is euphoric. >> right. >> for him. he is euphoric. we want to get to microsoft,
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the company's office dominates the pc world, the software giant hoping it can do the same in the cell phone world. jim goldman is here with more on microsoft's latest move. jim? >> reporter: hey, bill, good afternoon to you. microsoft's steve bomber has always called apple a rounding error when it comes to mac sales and even iphones when you measure against sales of handset attention running microsoft's windows mobile operating system. today microsoft has taken a big step forward in can touring an even bigger chunk, not with its windows mobile operating system but with its windows office. the company announcing a sweeping new partnership with nokia to include office and work on new apps down the road, the deepest partnership of its kind these once bitter rival versus ever undertaken with anyone. nokia uses the symbian os, and this is about turning them into
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the choice, and staunching research in motion and apple. >> indeed, an organization like nokia has demonstrated just out last night, 45% market share in that space. and you know, that's something that captures our attention. >> in a successful corporation between two companies, i think there is a forceability that expands to other areas, brings new foods and new possibilities. >> yeah, and let's not forget, google and its push into the mobile space with the android operating system. this is a big attempt by both nokia and microsoft to blunt that success. i guess it's more a case of my enemy's enemy is, well, my friend. >> jim, thanks. see you later. plenty of talk about maybe the recession has bottomed. we have a very high-profile ipo that began trading today. for example, are we looking at green chutes or a top? >> also, what will walmart's earnings reveal about the health of the consumer when they report tomorrow? and auto has got a bail out, banks got a bailout.
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does retail need a bailout? plus, worried about a backlash, banks taking a low key approach to sponsoring sporting events. stealth hospitality or just business-beneficiarying? >> and get ready for the "fast money" halftime report. we are back in two minutes.
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prices have gone up too high, foot, and there is still going to be a correction downward if the market can only use it in a surprise on the down side, if the earnings improvement is good, and is financially strong, is likely going to show more losses ahead. >> an absolutely euphoric roubini there. is he right? >> yes. >> so are we going to see a correction down the road here? let's get our task force, darren richards, chief investment officer, and michael health cara global strategist at global funds. thanks store join us. >> thanks. >> darren, we have had a pretty good rally in july and the early part of august. what do you see? are we going to see a correction down here? >> i don't think so. i think we continue to go higher, bill. i think that straight extra inject tree we have been on may have some ups and downs, but stocks are still undervalued right now and i think the bond
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market is priced in a much better situation than the stock market. so i think we still have some room to go here. >> and michael, we're showing the chart of the dow going back to the march low. i mean, when you think about it, we haven't had a meaningful correction since march 9th here. aren't we doomed? >> we are, but i used the fibonacci level back in february that showed me a level of 6422 for a low, and we just missed that area. that same chart has 9391 as a big level here. now, granted, that's a monthly chart, but a settlement for the month above that level confirms the breakout to the up side and one reference i'm using is the contract behind me for the contracts of march, june and september of next year. it's a three-month spread against a three-month spread as a butterfly, trading at zero. what that shows us is, the forecast going out second -- first, second and third quarter of next year is steady rates. that itself is fuel for the equity market to get some legs here, only because if they think it's going to be steady, inflation could start to
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dissipate. >> so let me just clarify. we're sitting at 9367 on the dow, 9391 you see as the possible breakout point. >> right. yeah. and if we trade above it, that's very positive.x but we have to settle above it, and it's a monthly chart. >> darren, how should we read the fact suddenly we have had ipos. we had starwood doing this secondary. $810 million, down 1% -- excuse me, ipo down 1% on the first day of trading. how do you read that? should we be excited that we can get ipos done here, or should we be concerned that it's trading down on the first day? >> i think it's a positive sign that we are getting ipos down and the market is reheating again. the fact that companies are bringing things out and not afraid that prices will drop immediately i think is a very positive sign, michelle. >> would you agree? >> michael? >> yes. let me tell you right now, i think what's happening is the crude oil market is going to really set the pace there. but for the ipos in itself, just to see them getting done considering where we came from, i don't care about the direction right off the bat.
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i think it's very positive. >> darren, where is the individual investor standing on this rally? we understand they missed the first call at 40% up. are they in for any piece? >> i think a lot of them are, and i think some of the institutional missed more than the individual investors in a lot of ways. so the smart money missed it, as well, if not more so. i think investors are getting comfortable with coming back in. i know our clients have called me and i've had a few people that have got home equity loans and put money back in the market. >> put out a note saying the same thing. saying listen, we haven't seen a lot of individuals get in here yet, all of this money on the sidelines in a moment when investor optimism is turning positive. we never unleashed that, michael, we could really see something powerful here. >> i think trader not miss the move. investors will miss the move unless they get involved. investors, it's a longer continue term perspective, and that's why i think these levels in breakout territories for investors, there is still time here, because your horizons are much deeper for the same reasons
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watch the dollar. i know rick has been talking about it at length. i think there could be a head fake here. i honestly believe you're going to see a stronger dollar as we get near the end of year. and i think that would really blow out a lot of accounts. and if you look at the recipro cat trade, the dollar against crude or against equities, that's the reason why people might start turning bearish here. let's see how it works out. but for right now, the fundamentals in the marketplace, the economic numbers themselves, hey, they are very positive, and those are the kind of signs we needed two or three months ago. >> very good. >> interesting. darren, michael, good to see you both. thanks for joining us. >> thank you very much. >> up next, big economic report to the stock market. walmart earnings tomorrow. what should investors expect from walmart, when what will it tell us about the economy 1234 and does retail need a bailout? we ask the experts. >> and here is how shares of walmart are performing right now, higher by 1% on the day, $50.46 a share. cash for clunkers is available at your chevy dealer,
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for a smarter way to trade online. only fidelity lets you back-test your strategies against an entire portfolio of stocks. plus you'll get advanced, customizable trading platforms. and you get the kind of execution you'd expect from fidelity... ...with a dedicated specialist to talk about even your most complex trades. they'll even help expedite the account transfer process. trade like a pro. trade with fidelity. welcome back. macy's out with their results this morning. they beat expectations, raised guidance. how are they doing it? we're hearing a very similar song from them that we have heard throughout this earnings
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season, they are cutting costs, managing inventories. sales there are still negative, but where the department store chain is seeing the biggest upside is in their my macy's pilot stores. essentially, these are a store concept that tries to cater to regional tastes, 20% of the business is doing them right now. and the my macy's districts are outperforming the rest of the store base by 2.6%. now, by region, the midwest is outperforming, california, the p southeast, they are p underperforming. merchandise that is not sell rith now, they laid it out on the conference call. furniture, mattresses and handbags. and also said bloomingdales is performing less favorably than macy's and the macy's harold square store has had, and i'm quoting here, a great trend in the last few weeks, steve. they said some of that traffic from tourists is picking up right now. >> very interesting. thanks, rebecca. walmart also out this week. i believe it's tomorrow, yeah, big number. with analysts on average expecting revenues of $103
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billion, and earnings unchanged at 86 cents. our next two guests have a buy rating on the stock, but they have really different opinions. david strawser at januariy montgomery scott. and a 83 cent a share forecast. but david, you don't think the consumer is back here. >> no, i don't think so at all. and we haven't seen anything in june or july that gets me excited that spend something coming back. >> but even in that environment, walmart is a buy and can prosper. >> yeah, well, walmart has lagged in this recent rally by a lot and the opportunity, i think, is here. and especially if the consumer continues to stay weak like i think it is right now, people may look to walmart as more defensive play. >> neal, what do you think? what i think about walmart's earnings, i wonder if the better the news is for walmart, the worse it is for the economy, because it's still more of that tradedown. >> it's a bit of both, depends
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on what walmart says about the consumers' health tomorrow, have been a beneficiary of people last year, flock to go get cheaper places every day. but as david said, the consumer is really still in money-saving mode and we might be going from a period of buying far less to simply buy less, and i think walmart is placed in any environment. but may face a tougher second half of the year as they come against some cuff comparisons. >> are they well-placed as we get a return of strengthening in the economy? >> i think so, as david said they underperformed against the more cyclical retailers, but also walmart has gone really from a period of trying to get as big as possible and is now going to try and get as good as possible. not necessarily the best at what they do in retail and i think going from trying to be big to trying to be good is a strategy that will help over the next five years. >> david i have long maintenanced there are too many retailers out there, beat each other up and margins get squeezed and they have to deal with the mer curial consumer,
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and even when the economy sneezes, they shakeout. do we have to wait a while to see a change in the retail environment? >> i think so. you saw a couple big abruptions last year, lenins and things, circuit city, and a lot of others we don't necessarily see because they're not the big public companies but the smaller mom and pops, and that tends to help a lot. and as retailers, there's been so much growth that we have become much more of a cyclical industry now. >> david, talk about the impact of disinflation or deflation on walmart's earnings. on the one hand, their ability to charge prices is down. on the other hand, the prices they pay are down so it's a gross margin story. >> i think they have a great opportunity in gross margin. even lower energy costs help these guys a lot, too. you know, we saw a lot of companies talk about beating
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numbers because of lower freight costs, and while no one spends nearly as much as walmart does on that, lower deflation, especially food deflation is an issue that is pretty big right now, and neal might be good to talk about that, because he also covers the supermarkets. but that tends to hurt the comp. store sales a little bit. >> so what i'm trying to get down to the bottom line here is, is the consumer a winner here or is the stock shoulder of the share of walmart the winner? david, do you want to take a shot? >> they're both winners. there is no doubt the consumer did he inflation helps. lower prices is good for the consumer. for walmart will manage the deflation better than other retailers. overall, probably not great for retail, a negative for retail, but walmart is a company with the ability to probably manage is better than others. >> neal, last question. david has a target of 60 bucks on the stock. what's yours? >> well, 62. >> okay. we think it's going to be a good year for walmart. >> thank you, both. see you later. thanks for joining us. >> we're calling it stealth
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hospitality. big banks corporations still entertaining clients at the u.s. open and pga championship, but because of pressures from washington, d.c., no signs on the tents, no logos on the loot. is this more business-bashing? that's our power grid debate. >> it's just wrong is what it is. is just wrong. coming up in the meantime, get ready for the "fast money" halftime report. melissa, what's your handicap? >> i don't play at all, sadly. all i know is ten-finger grip. that's about all i know on the golf course, in golf, yes. all right. let's move on here. >> a big rally on our hands, we will talk about one sector higher, but the market pricing in a short-term correction. we'll tell you which sector that is. and you heard about the mccalifornia company, we'll ask what the prospects are ahead for those guys in the u.s. we'll ask the monster, jon
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najarian up next in the halftime report. but first, more "power lunch" right after this. reading about washington these days... i gotta ask, what's in it for me? i'm not looking for a bailout, just a good paying job. that's why i like this clean energy idea. now that works for our whole family. for the kids, a better environment. for my wife, who commutes, no more gettin' jerked around on gas prices... and for me, well, it wouldn't be so bad if this breadwinner brought home a little more bread. repower america.
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i hope our senators are listening.
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welcome back. halfway through trading session. in the headlines this hour, sara lee reporting a narrower loss in
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its second quarter, backing out one-time charges the company did beat wall street estimates. growth in north america helped to offset weak demand overseas. and lawyers for the u.s. government and ubs say they have a deal now in their case involving secret swiss bank accounts. u.s. wants names of more than 50,000 americans believed to be hiding nearly $15 billion in secret accounts. we'll learn more details of this deal next week when the swiss government signs this. and deutsche bank says pfizer may raise its dividend between 15 and 25% in december. pfizer had sliceded that dividend in half when it announced its deal to buy why at earlier this year. >> so big bank logos have disappeared in major golf tournaments as washington crashed down on what they called excessive spendings. much so corporations taking a low-key approach to event sponsorship. shhh, we're corporate hosts, but
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don't tell. is that a good move or another sign that business is being bashd which washington? guys, good to see you. you know how it works. 20 seconds each. rich, 20 seconds on why this isn't business bashing. >> this definitely isn't business bashing, especially when you're basically asking businesses to live by time-honored business standards. you know, i'm a participant in my public relations firm and we don't spend anything unless we ask, what's the roi, what's the return on the investment? and why would you be so quiet about it? so i think taxpayers rightly want to know if you're going to spend $200,000, what's the roi? >> jason nirks any counter to that? >> sure, they're being quiet because they're being beat up by rich and members of congress. this is bringing to the economy to its knees, wanted to buy $550 million worth of corporate jets for nancy pelosi and now
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lecturing business on sponsorships which are a form of advertising which increase volumes and profits. >> rich, advertising, we want them to make more money to pay back the taxpayer. >> in your opening statement, you said there is no corporate log logos, no nothing. it's not advertising of. as a taxpayer, what is the return on investment for under the table corporate sponsorship. >> it would have been okay with you if they can put their logo on everything. >> if they can prove to me that they put their logo on t-shirts and because they have that sponsorship and they spent $200,000 doing it increased their business by a million dollars by a taxpayer and now a stockholder, i would be fine with that. >> here we go, rich micromangaging business decisions, formerly known as wachovia bank. you used to sponsor the wachovia classic in char the lot. thank you, rich formerly known wachovia bank used to sponsor
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the wachovia classic until they got browbeat by members of congress doing rich's beating and withdrew the name and so now rich says what are you with drawing the name for. this is classic micromangaging in no wonder business is under the gun. >> what's the roi on it? >> let me tell you exactly what the roi on this -- what they're doing in corporate sponsorship's -- in fact at the pga this week in the twin cities where i'm from, they're investing in their best clients, they're saying come to our tournament. you're the best client we've got, this is a discount to their best client. >> he wants a hard number. what's the roi? >> well, rich, if you looked at the p & l in these companies, let me know. >> here's the deal, public companies, why don't we look at it? >> well, give me numbers. i'm asking you. we don't know the numbers, because here's part of the problem. they need to come forward and say, listen, we're doing those corporate sponsorships because
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it gives us x million dollars and increases business. if you can't prove that to me as a taxpayer -- >> jason, hold on. >> this isn't all about, jason, where we are right now in these times. how bad a word is big business right now in the mind of the american public, jason? >> well, it's bad, quite frankly, because of what members of congress have done. and some in the mainstream media have been beaten up on business. i'm not suggesting cnbc has, but some have. and therefore, they're afraid. they're afraid. but this is classic socialism where we will bail you out, and i am looking forward to the bailout. >> rich -- >> wait. let me finish. we will bail you out. and then micromanage every decision you make. >> i don't know. i don't know. i'm not sure -- i would ask rich, if big business found a way to get itself a bad name on the public all by itself. >> ask john kerry, barney frank, who was it that was taken to tank for advertising at these pga events.
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congress has fallen in this particular case. they started the ball rolling. >> there is no question here that i think that if you look at it, we're not talking about corporate advertising. we're talking about stealth under the radar corporate sponsorship. that's because they have been beaten up too much. >> all to jason's point, which is the minute you start bailing out banks you feel like you can tell them what they can do with everything, which -- i find the socialism word a little extreme and far from that. >> michelle is exactly rate. lehman brothers isn't doing any sponsorships. >> yeah. they shouldn't be. >> well, they weren't bailed out. they went under. that's the point in all of this. the left wants to bail these companies out so they can control -- >> and then yell at them. >> good they're making bad investments, rich, let them fail. >> well, i mean, why don't you talk to george bush, the guy that put forward the original t.a.r.p. money? it was supported by democrats and republicans alike. and so -- >> it wasn't supported by me. >> that's fine.
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but one of the reasons people are so angry is because they're not showing exactly what these dollars are being used for. i've got no problem with the corporate sponsorship. if someone can tell me how they're being benefited. but if you're not even advertising, then i don't see how there is any -- >> we have to leave it there. i think you both missed the point. i actually disagree with bill a little bit. i don't think congress -- >> what a surprise. >> i don't think congress is responsible for this. i think an era of business opulence is really what's behind this, and there is a backlash from the american public. leave it there. >> beep. >> let's move on. brand-new numbers on the housing market. where home prices are getting better, and where they're lagging. diana olick will bring it down. >> in fact, look at home builders stocks, all higher, toll brothers announced the first year over year gain in orders in four years. leonard, dr horton, all trading higher today. back after this. i'm racing cross country in this small sidecar,
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just getting started on this fed day. you can see the fed right there. that's the countdown to the fed decision. mixed news on housing market, home sales up, but prices down, and in some places you might not expect. cnbc's housing experts, diana olick joins us from washtd washington with more.
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diana. >> >> that's right. the second quarter showed a healthy surge in home sales, but the recession on price social security driving the surge and we know it's happening on the lower end of market. take a look at the latest quarterly metro home price report from the national association of realtors showing prices rose nationally, but off 3% from a year ago. while 39 states showed increases, these ten showed year over year, which is really an even better indicator of a real trend. the worse states are california, arizona, florida, nevada, the usual suspects. overall, 129 of the 155 metropolitan statistical areas reported lower prices from a year ago. and the steeper price drops are broadening now to atlanta, chicago, seattle, new york, new jersey area and here in d.c. distress sales, that is foreclosures and short sales, accounted for 36% of the transactions. again, that's pulling down the
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prices. now, a couple other important things to note from this report, a full one-third of the buyers in q2 were first time home buyers, obviously taking advantage of the first time home buyer tax credit, which expires, unfortunately, in november. secondly, the realtors' report that mortgage prices -- mortgage rates were down to a record low of 5.03% in q2, they are now up to 5.38%, and application volume was down last week. doesn't bode well for the next quarter or. so one thing to note, though, some good news from toll brothers, and we'll have an exclusive interview with bob toll at the 4:00 hour of the "closing bell." steve? >> citi jumped off the pages, something that was a turn-around in a place where you did not expect it. >> a turn around? well, unfortunately, many of the usual suspects. what i was looking for is where did we see year over year price gains? and the only places i could find the more really small areas, like, say, amarillo, texas or davenport, iowa, el myra, new
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york. we talked about big sales gains there, so going as expected, but i wonder about places like chicago where we're seeing the big price drop, will we see a surge in sales. >> thank you, diana. still ahead, another big bond auction could be a huge market-mover. $23 billion in ten years before the fed meeting! we've got results, instant analysis, market reaction, ton of the hour. see you esesesesesesesesesesesess
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welcome to the "fast money" halftime report u getting to the heart of the action as it's happening. stocks taking off with financials and technology, setting the early pace. what is your best move right now as you wait word from ben unanimous key. our "fast money" crowd, design capital and patty edwards of store house participants. the ambassador, let's start with you. not only are we waiting for the fed meeting but the ten-year auction at the top of the hour. is it too late for investors to short? >> i think we are setting up for disappointment. the stock market's move today is almost a relief you get from a statement that is universally understood to be unchanged but some tinkering with the qualify
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active easing statement, ten years rich into this auction. i think we're getting this early. i'm worried about the afternoon trade. >> so what happens, danny hughes, in your experience if we have a free federally, once we get the statement, once the news is off, are we going to see a sel sell-off? >> i don't look at it exactly as a prefederally, because we kind of came in yesterday. so this is a relief from yesterday. plus buyoffs are up considerably, and i think people want to see investors and traders alike that we're not there yet, we know that. we think that probably what we're going to see is a hunch. we know we're going to see a hunch, but we don't think there is going to be any real negative underlier. so i think that's what everybody is hoping for. might be even a further rally after that. >> right. it does feel sort of like a snap-back rally based on yesterday's softness, patricia. and one area we are seeing that in is certainly technology. but you say there are opportunities even with the 1.5%
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gain we are seeing right now on the nasdaq. you are watching microsoft. >> yes, like the deal they are doing with nokia. i think they are lining themselves up with good, strategic partners, trying to make changes to the way they have done business. windows 7 coming out, and the stocks trading fairly cheaply, and almost like buying a bank that doesn't have the risk. much i think you go in. . >> yeah, the one thing you've got to be careful is the overall market. most of these stocks we talk about are highly-tied to the overallin did he sees, and if you look at the multiples the s&p is trading on, upwards of 19. it's a little scary here, and i want to caution everybody out there, i agree. microsoft, some of these great quality names look good, but if we see a short-term pullback, that's going to have an obvious effect on your trade. >> ambassador, looking at the financials, are you seeing any opportunities there, because that is another area snapping back today. we are seeing of note, morgan stanley down amidst all of the financials. >> well, again, yeah, it's a snapback because yesterday was a
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tough day with jpmorgan which has been on a great run. i would be cautious here, because fed has nothing to do but disappointment. i don't think they have a lot to say. but i think we're long in the tooth in this financials rally. we have house price index numbers, which to me tell you there's a lot of bad debts and loans that are only going to worsen in price. >> let's move on, talking one sector home builders, toll brothers, the company announcing home orders climbed 3% from earlier. analysts predicting a double digit decline. girard, you are long time bullish on the builders, what are the pricing in terms of the short term here? >> a couple things. first of all, prices have come in quite a bit in the last quarter. that makes things more affordable. you've got obviously a lot of fundamentals, but also underlying issue. i'm talking about the xhb. here is a stock that's run from 11th to 14 plus right now, 15 plus. you've got to be careful. the options marked, there is a
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lot of recall action, people selling calls at stocks at their long and also bearish call spreads in december. and i think i would be along those lines. near-term, i look for a bullback, but i think the long term fundamentals still there. we should see an improvement in credit markets. >> patty, i want to ask about corollary plays, home depot by 1 pin 7%, but seeing disparities between home depot and lowe's, and better than expected earnings saying business trends are in fact -- stabilizing. are there any retailer holding plays that you like. >> if i'm going to go there, i think i go with home deep in the midst of a turn-around. frank lake making good changes within the stores. that being said, every time i walk into stores, virtually no one is in there. so if you're buying t you're buying for the long-term, not for quick pops. >> let's move on to technology. we are seeing the gains powered by applied materials, which beat both in the top and bottom line after the bell yesterday.
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cree also putting in a nice performance. tim seymour, do you like the semiconductors sector, do you like the semiconducted, do you think applied materials gives it injection? >> after a big downward trend in chip spending, they did say there was light at the end of the trouble. i like it over intel and do thing you have for those who said the tech rally is done, this is the kind of ammunition you see. we're seeing that. >> ins that a catalyst, enough f a catalyst for the stock to move forward ahead of third quarter earnings? >> i think it's possible. two of the names we watch on the semi side or tiog and microsemi, everybody has cut inventory. is it enough to push forward through any kind of personal consumption ward to electronics
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and, they throw up the satellite, i think that's what we're wanting to see. more growth, not just inventory cutbacks, wal-mart is trading higher today along with most of the retail sector, but it is down about 9% year to date. patty, where do you stand? it's been a frustrating trade. >> it has been. and i don't really understand it. underloved and undervalued, i'm walking the stores on a regular basis and loving what i'm seeing. they looked better than target and kohl's, if you walk the stores and is see what they are buying, people are trading down. you've got to own it. you have to own it. >> i support you wholeheartedly, i love wal-mart. i grew up in philadelphia, we didn't have wal-mart, in texas they are packed. historically this thing does not move that much. if you own it, i wouldn't expect
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a 2 or 3% more any way. i would be leaning to the bullish side. they are packed to the gills every time i walk in. i love the store. >> let's look at another slice of consumer spending. all of those signs trading to the upside, announcing a public offering, saying showing signs of rebound. is it time to get into these names, let's check in with john of option monster.com. is this enough to spark m gm and win? >> you bet it. you've seen a flow of money into lva, where we were hanging out a week ago. we set the tables, heating up with consumers, not only booking and staying atika seen knows which they had been but showing up at the gaming tables today. today's action is about this
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offering by npel and the fact they've been on the docket that they've been offering up to $4 million in stock, not a big surprise. but the fact the stock was down 5% in the pre-market and has now turned it around to be up 6% on the day, that's note worthy. the action in las vegas, three times normal on the call side. keep an eye on that. they are reasonable but not seeing as much action on the speculative side as we're seeing in lvs. >> i have noticed the stocks have been doing decently since you and the negotiator got back. >> that's probably because we left a lot of our money on the tables. the negotiator in particular, although he was hitting them hard on monday night. by the time 2 or 3:00 in the morning rolled around, things may have turned. >> dr. j, thanks so much. tonight's fast money, do not
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miss an interview, up more than 12%. up next, cnbc exclusive with the ceo of america's biggest food distributor cisco. back after this. >> bernanke said to keep the beach bash going. will the low interest rates come back to bite us once again? and word to the wise, don't listen to m.c. hammer. >> i can get cash for this gold medallion. >> on why its stock is the best way to cash in plus the chairwoman combs over the fine print for a new lease on life. on market's post market show tonight.
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welcome back to the "fast money" halftime report.
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the deal with microsoft will help them compete for the business consumer or because nokia has gotten pounded? >> are you doing the segment or am i in. >> i'm asking you. >> it's a very important deal for nokia, they have lost market share to apple and they are still the leader in smart phones. smart phones are up 27%, they have 40% of the market. going after the business community is what this is about, running microsoft applications on nokia phones is huge. they need to go after this clientele. this is where they are losing ground. this is an exciting deal for them and very interesting that competitors on the software side are teaming up here. >> good for nokia so bad for rim? >> absolutely. look at where it settled in off the terrible numbers at $13, you've got very good support. this is an interesting place to get back in the stock and exciting news, you need a catalyst for nokia.
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>> we have the top ranked wal-mart analyst to see what you should expect for the annual release. "power lunch" debates whether this meeting could be the fed's turning point. >> a lot coming up here, you have to stay tuned for breaking news at the top of the hour, we have 23 billion ten-year bond auction, one of the most dramatic events of the week, are people going to buy even though they don't know what the fed is going to say an hour later. we have smart international plays for your portfolio. and empty calories, the hip hop world calling a bottom to the recession. u.s. airways an agreement, led to expand at the laguardia airport and washington reagan national.
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as much as 25% in december uvs struck a deal with the government and tax evasion case. i'm courtney reagan. why are we in such a good mood today? >> it feels like friday. >> are you in that good of a mood too? >> we have little league baseball tonight, yankees, couldn't be better. >> and a bond auction that i'm excited about. >> so far the bulls are in charge on this very important day. the fed meeting, the dow up triple digits, we will the results of the $23 billion ten-year note auction, which will be out momentarily. and as we said, a very awkward timing right now, one hour ahead of the fed's announcement here, michelle. >> i'm michelle ka russo cabrera. we're going to take you live to
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a meeting here in englewood cliff cliff, new jersey. >> if you want the real read on the economy, look at this company, the biggest food distributor in america. we'll take food commodity prices and the state of american business and health care reform. >> we have rick santelli standing by. >> how awkward is it, steve, do you think to be announcing results in conducting this auction, an important one, ten-year note, an important component of any portfolio, 1:14 minutes before the fed's announcement. >> the broad perimeters of where the 10-year is are pretty much set for this meeting. we've been trading in this broadly called it a 350, 3.90 range at the top. i don't think there's going to
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be too much change from that. if it does, it becomes a consideration for the fed. >> the overall question still is the government has got to borrow a lot of money today in the years to come. how much will they be able to do it at the cheap rates? rick, what's the grade? >> i'm giving it a b but there is something real unique about this auction. the bid to cover is 2.49, almost spot on with the ten-auction average and over the last one. but the yield at 3.734 is a much lower year than the wi was trading. let's get this straight. in a dutch auction, the way you are aggressive is to put in a very different price than where it's trading. it's because you want it. the bid to cover it isn't necessarily effective. what i'm getting at here, if somebody involved in the auction
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process athinking quantity tate tif easing is going to get re-upped. >> do you mean the fed is going to buy more than the 300 billion they committed to? >> when the money sunsets in another four weeks -- >> rick, you are saying the fed's purchases of treasuries the measure or toe talty of quantity take tif easing -- >> i said it went well in a demand price and some dealers believe -- >> feds come in and do more. the fed will continue with qe when it comes to mortgage-backed securities, taking us into the rest of this year and agency bonds as well and looking for other ways to expand the balance sheets. >> you know what rick is talking about. he's saying specifically are they come along and buy at this moment, that would have an
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impact. >> you mean continuing to buy beyond september? >> i would have a hard time seeing -- i don't want to -- >> the dow and 10-year note are doing right now. >> i don't want to question rick, but i will say it's hard to look at an interest rate and say this is contingent upon the fed continuing to do something next month or continuing this he'si easing, second place, i don't know the fed has had that much of an impact here and the market believes the fed -- >> you know, steve. think like a trader. there was rumors that the 7-year auction was taken down by dealers and fed through buybacks came through and took care of the sector. this is about kind of spot trading. doesn't have long implications but also tells us that the dealer community and the fed and treasury are all working together. i want to see how much
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bleed-through there is. >> the stock market reacting very well. what i find odd today on a fed day you get indecisive trading. >> it may be on fed watch right now, didn't do that all that much to the auction. now we'll wait the hour and change before we see movement -- >> rick wants me to think like a trader. that would be my ruin if you ask me. >> traitor, we are an hour away. is rick going to stay with us? we're an hour away from the fed decision. is this the turning point, transition point for the fed and will ben bernanke keep his job. julia, let me start with steven stanley, do you think there's a bid on whether or not the fed is
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going to come in here again and continue this program for buying treasuries inside today's auction? >> it certainly is a little bit problematic that we're watching a 10-year auction when we don't know exactly what's going to take place. in general the market is pretty convinced that the fed is not going to buy more than of 300 billion of treasury. i don't think there's a tremendous amount of uncertainty there. there may be certain individuals or certain institutions that might not want to bid today because of uncertainty. but in large part the market has already factored in the fed -- >> the option is cheap relatively, they may or may not do it. i think the option is they come out and say it or don't say it, but it's going to expire mid september, that your thought? >> i don't expect them to kpl explicitly confirm or deny they'll let the program go away.
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i think this is positioning around an auction and not saying what expectations -- >> julia, you think the program will run out and they won't give you thumb's up or thumb's down? >> i think what they said last time is they'll continue to monitor the size of the programs and timing and do what they need to do. right now the fed is most interested in buying time. market has gotting very optimistic. it has gotten more optimistic than the fed right now. >> hold on, rick. i want to get to this idea that we talked about at the begin, when we go back and look at the minutes that this is really a turning point, we did the end game on the balance sheet expansion and begun the preparing for the peace here? >> i guess that would be arguable. to me the turning point was really june.
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up until a few weeks before the june meeting there was a consistence it was going to buy up the program and then there were leaks therapeut s they wer buy the 300 and let it run out. that's been the consensus. >> what about more broadly? >> you don't think we've hit the turning point yet? >> i think the fed will be discussing a variety of scenarios, including potentially extending the policies, extremely concerned about the commercial mortgage market. they might even consider extending at this meeting, that may be part of the announcement. >> will the discussion at the fed's meeting reflect the fact that maybe we have hit a turning point in the cycle? >> there's one scenario they are evaluating. we have to keep in mind the bounce we've seen came from defense spending in q-2 and auto
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sales going into q-3 and concerns about consumers with lost wealth and tight credit are still very much alive. i don't think the fed is convinced we're in a sustained recovery. and i think they are a little more pessimistic than the market. >> does ben bernanke keep his job? >> i thing the odds increase every day he will to the extent the economy is turning around a little bit. i think the idea that we need continuity and also i think that a lot of potential candidates people view by the markets is dubbish where the fed will have to take away a tremendous amount of accommodation. >> if bernanke is reappointed, does it create a rally? >> i think it would create tremendous uncertainty. the continuity here is very
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uncertain. and that's something that the market appreciates. >> does it affect mondetary policy between now and when we know he'll keep his job? >> no, i think bernanke is above that to that extent. >> let me start quickly to rick. one thing that's out there, thinking that wall street matters more than it does in the calculations of president obama? >> i don't -- are you talking in the context of whether mr. bernanke gets appointed or not? >> i think it's all political, not whether he has done a good job, they may want their own guy in. they won't do it because the potential replacements will be dofish, that's the whole point. i think they want a new person to be exactly that, more dovish. >> thank you. the fed's announcement is
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expected to be around 2:15 eastern time. "street signs" will be all over that. the fed and economy and your portfolio on "street signs" coming up next hour here. straight ahead, investors are waiting on the fed, we'll round up the all-stars and take a real time pulse of the markets. >> we're talking about a turning point when it comes to the fed and the economy, how about the hip hop world? we'll tell you how pop culture may be telling us just that. dow jones industrial average higher by 140 points. we're back in a flash. ( chirp ) team three, boathouse? ( chirp ) oh yeah-- his and hers. - ( crowd gasping ) - ( chirp ) van gogh? ( chirp ) even steven. - ( chirp ) mansion. - ( chirp ) good to go. ( grunts ) timber! ( chirp ) boss? what do we do with the shih-tzu? - ( crowd gasps ) - ( chirp ) joint custody.
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a little while talk about missing an opportunity. if you were up early enough and happened to go on best buy's website, you would have seen flat panel tvs advertised for $9.99 per tv. somebody alerted them to it. they took it down. it is unclear at this point how many people actually got to buy those flat panels for that price. we've heard nothing from best buy at this point. >> we're showing people on the screen, samsung lcd that sells for $1,500. dramatic difference there. do you honor them? >> we're reminded the government of taiwan last month ordered dell computer to honor a mistake
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in which it advertised 19-inch computer monitors for $15 and ended up selling 26,000 of those monitors to people in taiwan. and they had to honor those things. >> there's still a market at the right price. >> you've got a price of $9.99. >> move those tvs. now you know what the price is. we call the market clearing price. >> intersection of supply and demand meets. >> we have a rally going on beginning with bob pisani. and brian standing by at the nasdaq and sharon in the oil pit. bob, am i crazy, normally leading into a fed meeting isn't it more indecisive trade and the zisive trade comes close to 15? >> yes, you are crazy, i say that with great affection.
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normally it is more cautious. i'll tell you something, there is a lot of discussion about the fact there is heavy interest in financial stocks but ahead of the fed meeting. normally there is less activity in the financials. we're hitting a new high right here in "power lunch." 4-1 advancing to declining stocks. financials have been the leader, new highs for the year in all of the big insurance companies and citi is doing a little better. the regionals like key are lagging as a whole as a little bit but still a good day. the volume is about average, we're not getting the titanic volume we saw weeks ago. the disconnect here, the dollar has been weaker all day. oil and copper are stronger, most of the other commodities are not stronger today and commodity stocks aren't doing much. they are lagging, the overall gains we've seen. very cautious in their
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commentary here. teches are stronger, we had applied materials making positive comments. talked about improve demand in taiwan and improving demand in the notebook market here. overall, holding up really well. trader talk at cnbc.com. >> doing very well, the interesting thing to echo, once you have the surprise move to the upside you would think it would taper but we have strengthened a little bit since the lunchtime hour, firmly about 2,000. 30 new highs today. microsoft with the deal with nokia, it could grow to something bigger but the two giants getting tonight with the global potential growth story is significant. the chips, an earning story, intel was one of the major sparks to this rally last month with their earnings, applied materials lost more than expected and expected to make money in q-4 and cree.
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and everything seems to be up right now. let's go down to sharon to see things are faring in the oil trade. >> reporter: the statistics we got about weekly oil definitely bearish, gasoline number wasn't that great. crude does not want to fail in light of what is happening in the equities market. we're holding strong because of the run-up we're seeing in stocks and because of the dollar's weakness and that is really trumping anything else out there in terms of fundamental data. we got a report about global demand growth from the international agency and they see demand down. next year expected to pick up 1.6%. that's a brighter picture on the horizon. we're not there yet. back to you. >> i was looking upda data here first named storm, july 10th.
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the first hurricane usually august 14th, are they betting this thing in the atlantic becomes a hurricane? >> reporter: not right now. it's gathering steam and will likely become tropical storm ana but it doesn't seem to affect the gulf coast region of the oil and gas facilities there. but, again, it takes one major storm for something to happen and for us to see a bid up in crude and natural gas prices. >> there is little correlation between how late the season starts and the activity of the season itself. >> reporter: just a number, just one. >> could still be very interesting, i guess. >> we haven't even had an a named storm yet. >> hurricane andrew hit august 21st, very late. >> august 29th the latest date. >> show me a chart of the dow, last hour our analyst was saying, if we shall if his work
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at least, if we can close above 9391, he could break to the upside beyond thaxt and we've since gone up 15 points, we're at 9382 right now getting closer to his number. >> why do we pay so much attention to what grill makers say about the market? >> this is the stuff we have to put up with in the newsroom. >> going to talk to michelle during the break. a huge player in food services, with $15 billion market cap. what is their business telling us about the state of the economy? >> take a look at cisco's performance, higher by 16%, 24.93. reading about washington these days... i gotta ask, what's in it for me? i'm not looking for a bailout, just a good paying job. that's why i like this clean energy idea. now that works for our whole family.
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got a broad-based rally on wall street. we've got exxon and chevron, some of the best performers both higher by 1.5%. it is the challenge facing many food companies today, how to cut costs amid a wave of restaurant closures and slump in consumer confidence. how is a company like sysco food services, how are they faring? we welcome william delaini. good to see you, thanks for joining us. >> thanks for having me on the show. >> how do you characterize where we are? we hear from other industries
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housing, some technology and elsewhere we're starting to see signs of a bottom. what about for you folks? >> we released earnings on monday. on the call what we spoke to is we encouraged we're seeing what i would characterize as caution or guarded optimism beyond the stock market. people we talked to. generally the tone is better. it's not clear obviously the extent of any recovery that's around the corner or what the pace would be. but i have to tell you in terms of our business, we haven't seen it yet. our volume levels are -- they haven't gotten worse but they are hanging in there about the same level as we reported for the quarter. >> you're bumping along the bottom? >> we think we are, yes,sir. >> when i look at who you distribute to, health care and schools, lots of different sectors, can you tell us what you're seeing in some areas doing better or worse or improving faster than others? >> that's a good question. most people think of us as a
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distributor solely to restaurants, that's a little over 60% of what we do. we have participated in the downturn those customers have experienced. 10% is with health care and another 10% with hotels and mow tells and college and universities and. when you look at sysco foods, our customer would be anyone preparing a meal that's at least prepared a way from the home and eaton eaten away from the home. >> are you seeing pressure with the ability to get the price you want and what about your costs on the front end? >> yes, double-edged sword there as well. for two years we've had high level of product cost inflation in terms of how we buy the product. that's been very difficult for our customers, averaged about 6% up until this last quarter. it did sub side. in terms of our cost levels this
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last quarter we were maybe half a point of inflation. it's turned and we're seeing modest deflation on our cost today. on the other side of the equation, you can appreciate a lot of our customers are looking for value but also looking for price even more than normal. of course, we've got 8,000 marketing associates out there on the street taking care of customers every day, there comes a point where you need to make sure you're highly -- >> you're kind of the wal-mart of your industry, you buy in such size i would think you're able to maintain a best practices pricing policy, that can you get the best price you want because of the size you buy in, no? >> we do, we buy very well. the challenge in this type of a market is to make sure that we're being responsive to our customers and hoping to support them through these times, we're the only publicly-held company in our space, we buy well and manage margins well but it is
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tougher than a couple of years ago. >> we're asking almost every ceo about the health care debate it is apparent through the town hall meetings it is ripping the nation apart. where do you come down on the whole issue of health care reform in the united states? something that would be helpful to your business, more government intervention, less? >> well, i don't know we have an official position. we have good health care programs at sysco and our customers have their own health care philosophies they provide to their employees. i think from a personal perspective, all reasonable people would like to see americans have access to health care. watching the news and seeing reports, from a business person's perspective, we can take the emotion out of this if we had more clarity in terms of what the government's role was going to be -- >> how many employees do you have? would you welcome a public option that would in effect compete or compliment your
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business' health care program? >> we have about 47,000 employees and i don't know the exact number, but probably about two-thirds are in our plan. and people that participate in other plans. as you know, a lot of americans choose not to participate in health care plans. we're real pleased with our plan and i think we would just as soon continue to have that as a primary option for our employees. >> anybody else? >> the restaurant -- >> we have no time -- >> the restaurant industry in particular is one where many employees do not have health care, i would think this is huge to your customers. >> the other question i want to ask, you have a health care program they administer and wal-mart and our parent company, ge has a program they administer, where's the efficiency there? if you're putting together or doing a merge enacquisition, couldn't you find reefficiencies in a redundancecy --
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>> our position is the same you alluded to. over the years, we've gotten better and smarter about how we just -- not just how we buy the insurance but how we structure it and ask our employees to participate. so, from a management standpoint and control standpoint we feel very good we're getting good pricing and have the flexibility that we need and we would prefer obviously to continue to go down that road. on the customer side, that's really not our world. yes, they are our customers but that's something that that group will have to figure out for themselves as individual restaurants or institutions and form their own opinions. with all due respect -- >> you're going to duck that bullet. >> we hope times get better so you can find a replacement for yourself as cfo.
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you must be very busy. >> my wife keeps asking me if i get paid for both jobs, i can't afford to do it. >> ceo and still cfo of sysco food services. u.s. market is rally, there's a whole world to invest in. what are the best global plays right now? >> he went straight from high school to working for bernie madoff and ended up cfo, now depascally pleads to jail time. who is this guy? when this hotel added aflac to compliment their benefits package aflac! it made a big splash with the employees yeaaaahhhh! find out more at aflac!... ...forbusiness.com (laughter)
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welcome back, swiss bank and ubs and the u.s. settle a deal on the tax probe. no final details ary leased it is expected ubs will reveal the names of the clients. shares of toll brothers trading higher after third quarter orders rose. the u.s. trade gap widened to $27 billion in june.
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that jump driven by higher bill for oil imports. >> let's show you the highlights today when it comes to the rally we're looking at. the financials are flying today. hartford financials up. look at citigroup, citigroup 28 cent move. and jp morgan, higher more than 2%. >> the stock rally hasn't been limited to the u.s., stocks have done well all over the world. eddie is the manager and joins us from the smart money. how much of that is the snap back rally we've seen as we witness the thaw from the freeze we were in earlier this year and how much reflects actual growth? >> the majority of it is true growth. in essence, the way we invest in our stocks, we look at stocks to grow earnings, regardless of the
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economic cycle. over the course of the last four months, within our morning star growth managers we primarily focus on things that can grow earnings regardless of the economic cycle. we have outsourcing companies that have secular growth and benefitting from what's going on in the economy now. what they do well and don't do well. they are starting to outsource more. those are the kinds of companies we have. >> you have a big concentration of pharmaceuticals, you're in the international pharmaceutical space for the long haul? >> that's secular, we love demographics, one of the few things to predict in the marketplace, the aging baby boomers we have company that's benefit from the growth in diabetes care in the united states. 8% patient growth in diabetes in the united states. german company that owns the largest centers in the united
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states. we also have a company with the largest maker of generic drugs and going to benefit from what's going on with health care reform. >> everybody keeps talking about infrastructure, is that play still valid? >> over the course of the long term, yes it is. we focus on infrastructure plays and company that's can benefit from the increase in standards of living for the people that live there. you look at urbanization, half of the world's top ten large cities are in the developed world, half of them in the emerging markets. you look at 2020, wind up being nine out of ten cities. all of that infrastructure spending has to take place there and we own banks and telephone companies. >> eddie ramos, thanks for joining us today. >> a judge rejecting bail for bernie madoff's right-hand man after he admitted the business was a fake and for a long period
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of time. who is this guy, frank dipasc i dipascali. >> like his boss of 32 years, he grew up in queens, joining madoff shortly after graduating high school. he rose through the ranks working as a research assist aents and finally cfo, described as a home body and family man, he lived with his wife in this bridge water new jersey home before being jailed yesterday. the father of three sons and a daughter, he is very close to his sisters and his mother. yesterday in courts, depipascal admitted being innocent to a fault. a far cry from the jeans sneakers and sweat shirts and polo shirts that he favored in the office. here he was seen by something as a figure having little contact with employees on the 18th and
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19th floors. he camped on the 17th floor. how important was dipascali, one former employer recalls being told he was important in the bernie food chain, see him huddling more frequently than with his brother or sons park and andrew who also worked at the firm. >> thanks very much. let's get to matt with the cnbc real time flash. what's up there? >> it's a little jimmy buffett, every which way we'll slice this bad boy. financials are very strong, i show 76 of 80 members are higher. within the financial soup on the industry level, insurers are up 4% here today. in fact, if you go to the super composite level, all 50 insurers are trading higher, not a single insurer is trading down. we mentioned genworth. pmi group, this may be a toll
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brothers reaction narry, anything mortgage related is working today. allstate, they think the rising market will help the portfolio and hartford financial, one of the hot stocks as well. you have to look at diversified, citigroup and piper jaffray as well. >> jokers to the left of me, jokers to the right. >> here i am. >> tempers flaring over health care. find smg angry constituents, town halls are turning into town brawls, joining us live for a meeting in new jersey. >> cannot wait to see this. >> he was thrown out. do you think he could have been thrown out? >> very possible. >> then in a few minutes, unintended sequences. the u.s. stocks for managing
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american port. that and more as power lunch continues. i'm racing cross country in this small sidecar, but i've still got room for the internet. with my new netbook from at&t. with its built-in 3g network, it's fast and small, so it goes places other laptops can't. i'm bill kurtis, and wherever i go, i've got plenty of room for the internet. and the nation's fastest 3g network. gun it, mick. (announcer) sign up today and get a netbook for $199.99 after mail-in rebate. with built-in access to the nation's fastest 3g network. only from at&t.
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the month of august has seen a number of health care town halls around the country. this one is under way in englewood cliff, new jersey, den sis standing outside. a lot of fireworks have come out of these things. most notably yesterday in pennsylvania in a conservative part of the state when many of the spectators there took arlen specter to task for the health care reform plans under way in congress right now. >> there has been so many focus
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whether or not it is right wing groups getting the people out, but i guess i would step back and say maybe their trying to get them riled up, says they are tapping into something. >> are they going because they are given misinformation? >> dorothy suggested it's not the people at the town halls, it's people sitting at home listening to what he has to say is his problem. i think obama has done a terrible job of saying where he stands on this. >> i think the opposition side has done a better job of providing the information that misinforms people. >> we'll get back to that in just a second. let's go to another story of greed and corruption out of the classic film on the waterfront. a new investigation into the ports of new york and new jersey, misuse of funds, doing
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business with convicted felons, failure to do background checks on longshoremen who unload the trip. didn't do background checks for 50 years, homeland security money, gone. they don't know what happened to it. joining us now to discuss, alan, when i read this, what i remembered what's dubai, when we had the politicians say, we can't let the arabs into the port because they are a security risk and yet americans in our own backyard supposed to be protecting us, government employees that we pay, failed. doesn't this give lie to what was absolutely just pro cliffty by politicians to tap into the phobia that was totally unjustified. >> if you took 30 seconds to look up the record of the dubai
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government on trans shipping, very dangerous militarily significant, goods and technologies to countries like iran, then you would know this wasn't xen phobia, it was simple common sense and the critics were dead right. dubai is a major transshipping point for these kinds of items to governments like iraq and syria -- >> but politicians suggested that we needed u.s. government vo involved to protect this did. >> can i finish my point. >> the u.s. government is always going to be more reliable in protecting u.s. national security than a foreign government, can't we agree on that. >> we're not talking about a foreign government. >> sure, we are. >> michelle, in countries like dau bay -- >> how do you answer the fact,
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no background checks for decades, $600,000 of homeland security money, gone. the government -- this is a problem that we face right now. >> shameful and incompetent. >> you're right, it was shameful and incompetent but -- >> that's typical. >> the dubai government and you have to remember michelle -- >> dubai ports, private institution. >> in most of the world, the line between public and private sector is very blurry. everybody is mixed up with the royal family in one way or another. the policy of that government is don't ask, don't tell and the u.s. justice department has been on their case, the u.s. commerce department has been on their case and the idea we should have entrusted this government or a company from this country with
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national security responsibilities -- >> there was an examination 45 days it went on, they came up with nothing solid to prevent the deal from happening. it was withdrawn due to screaming matches -- >> you don't seem. >> cable networks like ours -- >> you don't want to understand -- >> you don't want to admit the government can't do it any better. >> let's take your premise and we should entrust these responsibilities to foreign companies -- >> no to private companies. >> no to private companies sfwl there are foreign companies and u.s. companies. >> why do you think politicians were so intense on keeping the status quo, we know. they weren't reacting about fears, therapeutic rethey were react to who was paying the campaign contributions. >> thanks, guys. >> i'm supposed to jump in and hold michelle back here. >> okay. >> i can't see her of course,
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but i can imagine. >> she's on the edge of her seat. >> so am i. >> all good fun, allen. >> almost had a hockey game break out there, very close. >> we got the mic fixed. the dow is up 125. welcome to the now network. population: 49 million. right now 1.2 million people are on sprint mobile broadband. 31 are streaming a sales conference from the road. eight are wearing bathrobes. two... less. - 154 people are tracking shipments on a train. - ( train whistles )
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still sitting there stunned. >> concerns over obama's health care plan heating up. dennis neil is at one of them right now. >> he's been thrown out, right? dennis? >> reporter: hey, bill, i'm here in eaglewood upper high school. there's 100 people here. not all pro or anti-obama. first, do no harm, we have a best medical system in the world. everyone clapped. producers got on scene earlier, take a look at this passion.
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>> six months to pick a dog, a dog? six months. and the bill he's passed without reading it. could someone explain that. >> it's unclear. the government hasn't done at the time right way. we should do something about this. >> why can't there be one plan for everybody, what you get, what i get, they get? they are living longer than we are and we're subsid diesing them. >> do you think there's orchestrated protest going on? >> i think it is grass roots. >> reporter: it's really passion here. while some people think it is orchestrated by public interest groups, i think it is how people are feeling. we have kelly conway with us, a republican adviser and also got julie on the left, an obama,
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sort of. what do you think of the idea this is not a grass roots it is made up? >> this is absolutely grass roots. these people feel strongly about the subject. i don't think it's manufactured at all. there's a wide range of opinion. >> i was kind of surprised when the congressman said, i don't support any of the proposals yet. why the lack of support? >> i don't know it's a lack of support or waiting to see don't forget what the senate comes back with will be different than what the house passed. it won't resemble anything we're seeing right now. >> reporter: were you surprised congressman didn't get in line behind the democrats? >> i'm shocked. he's up in 2010 as are another 435 of the congressional districts. these are folks whose political hydes are on the line. you can keep your doctor and we won't touch medicare, that got great applause. >> thanks for being with us,
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back to you in the studio. >> in the meeting itself as they are as they were yesterday with senator spek ter. >> reporter: say again? >> have the attend ees been as out spoken as they were yesterday? >> reporter: looks like it's going to be a little more polite. you did see screaming outside. a number of guys were screaming at me. i said, i'm not at war with you, be nice. the guy promised to stick around for two hours, 120 minutes, there's 100 people signed up, it's going to be a long day. >> dennis meeting his fans. a special at 8:00 eastern time on the town hall pressures on the health care reform process. >> tune in for that. >> up next, hip hop called a bottom in the economy, hedge funds invest in a bottom but
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didn't mean to. empty calories is coming up next. [ engine revving ] [ engine powers down ] gentlemen, you booked your hotels on orbitz. well, the price went down, so you're all getting a check
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